Markets have not seen such volatility as occurred on May 6th since 1987. While the "handwriting has been on the wall" for some time, it\'s high time to take a call to caution seriously.

1.
Markets Turmoil:
What it Means to Investors & Our Portfolios
To Our Friends of Silver Oak,
Yesterday, the stock market experienced the most
extreme one day volatility since 1987. A number of
reasons have been suggested to explain the
gyrations. A simple typographical mistake was most
likely the primary cause of the tumble – a trader
allegedly entered a trade that was intended to be in
the millions of dollars but an extra zero was added
Joel Framson & Eric Bruck,
Principals
causing the trade in Procter and Gamble shares to
be in the billions. Immediately thereafter,
automatic computerized program trading kicked in
to exacerbate the trading volume.
Mastering
the complexity
of wealth… Congress has recently been deliberating some
elements of financial reform. Never has that goal
to create and been more appropriate. The public should not be
sustain subjected to, and possibly penalized by, the
a better life
extreme price movements and inefficiencies caused
by these professional stock market traders. Each of
Silver Oak Wealth Advisors, us should contact our representatives to express our
LLC
concerns and press for financial reforms that will
effectively address these trading practices.
Of course, the apparent trading error does not
Click here to learn explain yesterday’s volatility fully. The economic
more... crisis in Greece and weakness in Spain and Portugal
is causing stress throughout the Eurozone. It may
take some time for Europe to stabilize. Until that
happens, it is more likely that we will see more
strength in the U.S. dollar, even more volatility in
the domestic and European stock markets, and
greater uncertainty over the structure and overall

2. health of our capital markets.
While economic data and corporate earnings have
been improving, there remains considerable
weakness in many parts of our economy. The deficit
remains high, the banking system is not back to
operating normally, and the housing industry has
certainly not recovered. While employment
numbers coming out today were encouraging, The
rate of unemployment is still holding at an
unacceptably high level. These are all continuing
challenges which can be expected to cause
disruptions and volatility in our capital markets.
As you know from our prior updates, we at Silver
Oak have been cautious and deliberate in our
investment approach since the third quarter of 2008,
when the capital markets and investment world
experienced serious structural fissures. We have
been conservative in designing our portfolios and
extremely focused on a realistic analysis of risk
inside of each investment opportunity. This path
has paid off nicely for our clients in reducing
portfolio volatility and enhancing growth of capital
as the markets recovered.
We continue to closely monitor our economy, global
developments, and their implications for portfolio
returns, While we do not think it is prudent to
eliminate risk entirely, we believe that we have
designed risk controlled portfolios that have
continued to offer returns to meet our client needs.
Please do not hesitate to call us if you should have
any questions or comments.
Sincerely,
Joel H. Framson, President
Eric D. Bruck, Principal